I love the ‘four walls’ saying. I heard it originally on Dave Ramsey, but you’d be surprised how many people almost starve or risk having their heat and gas shut off, but have up-to-date payments on the credit cards.

Our society needs to get its’ priorities a little straighter.

By Randall on Dec 18, 2007

I think one of the main problems most people have is realizing they have too much debt. The average debt for Americans is outrageous! Compiling your debt into one centralized spot is a great way to put it all in perspective.

I’m also blogging my debt away. Best of luck!

http://shauna26.wordpress.com/

By Shauna on Dec 20, 2007

I haven’t heard of the four walls saying before. It’s surprising to me that people actually let these suffer if they are able to pay other bills. The real issues occur when you are not able to support those four walls.

It’s hard to decide what to put priority on because modern life really is incredibly dependent on each of these things. I have found that you can live on about $10 in groceries a week (including milk weekly and the occasional splurge on cheap meat, butter, ingredients for bread, and diapers) if you go to food pantries once a week. Some people are too proud (or picky) to reach out for this type of help, but food really is the only “wall” that is this flexible.

We use low wattage, light sensitive night lights to avoid turning on lights as much as possible, keep our programmable thermostat between 60 - 65 degrees depending on the time, and use the Lifeline program (about $12/month for a basic land phone line) to keep our utilities as small as possible (Cable? What’s that?! LOL). I haven’t found a way to reduce the water bill yet that isn’t gross. Also, we usually take advantage of the grace period on utilities since my husband’s income is dependent on the housing market as well as weather conditions. One month we may barely be able to eat while another month he makes enough to pay off six months of past due utilities. The late fees are expensive, but the companies generally won’t shut off the utilities if you have a payment arrangement set up. HEAP will also pay an energy bill once a year if you submit a disconnect notice along with proof that you fall within the income guidelines.

If you have children, child care can also be considered a utility. Luckily, if you’re having as much trouble with basic necessities as we are you probably qualify for state assistance with that, which brings our childcare bill down to $200/month for both children. If you have a significant other you could also alternate shifts in order to have one caretaker at home at all times. I wouldn’t recommend this unless you completely trust your significant other with your kids and they don’t have issues with any addictions since, sadly, kids get hurt this way all the time.

To reduce transportation costs, we skip car insurance. Illegal, I know, but when it’s a choice between the kids eating dinner or going to work with all of the required legal documents in the car every day, I think the appropriate choice is pretty glaring. I would rather take a ticket than see my kids hungry any day. We just make sure to drive carefully. The risk isn’t that high as long as you’re not stupid behind the wheel. Another way to reduce transportation costs that isn’t illegal is to drive 60 mph everywhere you go. If you have a long commute like I do, you will see the savings in gas mileage immediately. I also don’t accelerate above 2000 rpm’s. I’m sure this is annoying to the speed demon behind me, but it is also very cost effective.

The only way to reduce housing costs is to move, obviously, which is a decision we are currently struggling with. The idea of not struggling to get through every day is appealing, but the idea of moving to an area with a school system that is consistently failing, drug dealers next door, and a landlord that will refuse to perform basic maintenance is not so much. That’s a personal choice that every family has to make.

Good luck to everyone with keeping those walls up!

By Caeli on Dec 27, 2007

I like what you said about calling the credit card companies to try and get your interest rate reduced. I’ve done this and can say that it does work sometimes. I was also able to get the credit limit raised substantially.

By Fiscal Musings on Jan 6, 2008

Great tips! The “4 Walls” theory is really good approach, I’ll have to go pick up Ramsey’s book.

By James Root on Feb 1, 2008

I’m embarrassed to say I’m one of those that try to keep current on the credit card bills/monthly but let the electric go. I am struggling but I have 3 credit cards not using them just trying to pay them off. Long ride to work so EZ Pass along with gas and Mortgage with a few ASSN fees. Just don’t see a place to cut back?? I’m eating at work so it’s not a major expense and I’m a grandmother of (2) I only buy food when the kids come up on the weekend. Just can’t figure out what else to cut out. Please don’t say move. I love my house and I’ve only had it 4yrs and It has truly been the one thing that I did for myself

By Patricia on Feb 14, 2008

Just stumbled onto this, and I know that I am late to the party but would like to leave my $0.02

I would add that it is important to come to an understanding with yourself WHY you are in debt in the first place, other wise it will be like a yo-yo diet. Reach goal, celebrate, get in trouble, budget, repeat

By Jeff on Jun 17, 2008

Dave Ramsey Rocks!!!!
After working on our debt for 2 years we have paid off over $40,000 in debt. My husband and I make around $35,000 each/year and have one son and another on the way. His plan is awesome, his book is definitely worth it! We’ll be debt free in Dec 2011!

By Amanda on Jun 17, 2008

Interesting all that you mention in this article. I think that also the help from an expert can help, for example, when you apply for a debt management program they can help you with a budget and the follow up on it, so it would be easier to follow the steps outlined here.

By My Debt Refinance on Sep 28, 2008

If you have debt and you have a maid service and Netflix….there’s something wrong.

By erica on Nov 6, 2008

Very nice information. Thanks for this.

By investing on Feb 19, 2009

it is everyones dream to have Financial Freedom but it takes hard work to achieve it. i am blogging and making websites in the hopes that it could lead me to financial freedom someday.

By Sandra Park on Aug 25, 2009

what happens when the credit cards do not get paid? I can make it if I do not pay my credit card debt - going cash forever. obviously in the past my cost of living was too high. i have changed that, supporting the 4 walls idea. unsecured debt cannot take my house or anything. i have guilt, but i am not using my credit anymore.

By angie erickson on Sep 4, 2009

This information is very helpful when it comes to credit card debt, however, for those who do like to enjoy life, there are times that creating other streams of income is also an answer to paying down debt and also creating residual income so that a lay off occurs, your company decides to downsize, you are terminated, become ill or have an accident, there is enough to cover the loss and you can continue living the life you are accustomed too.

Being on a budget regardless of your income streams, is vitally important. Regardless of how much money you earn, being on a budget and spending wisely keeps your value and net worth on the up and up.

Money is Energy and in any time of our lives, millions of individuals have experienced some form of financial set back, sometimes more than once.

Even Donald Trump will not pay more for something when he is able to find the same product for less.

That is called smart spending.

By Coleen Finneral on Sep 15, 2009

Да уж… Все-таки хорошее изобретение - блог. Казалось бы обычный сайт, но поменяли подачу информации, отдали вебсайт в руки одного человека и сразу открылась еще одна новая грань общения с миром.

By Гарри on Oct 17, 2009

Thanks for providing very helpful information on debt solution/management. There is always something anyone can do to cut back or eliminate debt.

By George on Oct 28, 2009